Acquisition strengthens development, production and marketing and licensing capabilities; includes award winning preschool series, Yo Gabba Gabba!
Halifax, NS – 14 September 2010 – DHX Media Ltd. (TSX: “DHX”), a leading independent international producer and distributor of television programming and interactive content, announced the acquisition of W!LDBRAIN Entertainment, the Los Angeles-based, award winning entertainment company that produces and animates The Ricky Gervais Show for HBO and turned Yo Gabba Gabba!, the live touring show and hit television series that launched on Nickelodeon in August 2007, into a durable franchise.
The acquisition further strengthens DHX Media’s position to become one of the top independent libraries of quality family entertainment in the world, with an eye towards developing content with hit potential across current and emerging broadcast channels, such as its Animal Mechanicals, Kid vs Kat and Franny’s Feet series. The deal also combines DHX Media’s efficient and acclaimed production capabilities and international television broadcast relationships with W!LDBRAIN Entertainment’s in-house creative team and relationships with U.S. broadcasters to fuel future growth across both businesses.
DHX Media Ltd. paid approximately USD $8 million with further consideration payable subject to the financial performance of the Yo Gabba Gabba! property during the next three years.
Transaction Highlights
• Yo Gabba Gabba! currently airs on Nick Jr. and in major international territories around the world
• W!LDBRAIN had unaudited revenue and net income of USD $6.9 million and USD $1.4 million, respectively, for the first six months of 2010, on assets of USD $12.8 million
• Deal includes an initial cash payment of approximately USD $8 million and a three year earn-out
• Contributes to DHX’s goal of building one of the top independent libraries of children’s television content in the world with addition of 53 episodes of Yo Gabba Gabba!
• DHX to gain access to new U.S. broadcaster relationships
• Addition of experienced marketing & licensing team to help drive revenues
• “Kia Motors Presents Yo Gabba Gabba! Live: There’s a Party in My City!” live touring show kicked off a 60-city North American tour at the end of August
Michael Polis will continue to lead W!LDBRAIN Entertainment as President, W!LDBRAIN Entertainment. He will also serve as EVP, Branded Entertainment & Consumer Products, DHX Media, where he will also lead DHX Media’s international licensing activities.
Michael Donovan, Chairman and CEO of DHX Media, said: “W!LDBRAIN is a great fit for our business. In addition to gaining a new hit US property in Yo Gabba Gabba! and its live show, DHX Media will also benefit from an LA-based studio with a strong creative and marketing track record and excellent US broadcaster relationships. Mike Polis and his team have a first-rate reputation and this collaboration will further advance our goal of creating and leveraging a library of hit kids and family entertainment brands.”
“In addition to further accelerating our development of co-productions, growing our successful franchises and leveraging DHX’s global distribution infrastructure for future properties, we look forward to working with DHX Media to secure new merchandising and licensing revenue opportunities in the U.S. and beyond,” said Polis.
For more information, please contact:
David Regan, EVP Corporate Development & IR +1 902-423-0260
Trade Press:
Anthony Jiwa, DECODE Enterprises +1-604-684-2363 x215
About W!LDBRAIN Entertainment, Inc.
W!LDBRAIN Entertainment is an award-winning entertainment company and one of the world’s foremost producers of animation. Based in Los Angeles, CA, the studio develops and produces television, motion pictures, short-form programming, commercial content and licensed merchandise. W!LDBRAIN has produced an exceptional slate of programming, including the critically acclaimed television series Yo Gabba Gabba! (Nick Jr.) and live touring show KIA Motors Presents Yo Gabba Gabba!: There’s A Party in My City, which is produced by S2BN, The Magic Store and W!LDBRAIN Entertainment; The Ricky Gervais Show (HBO) and Higglytown Heroes (Disney). Some upcoming television and short-form projects include Bubble Guppies, an animated series for Nick Jr. and Team Smithereen, the short-form stunt puppet show from Dan Clark. Visit www.wildbrain.com. Yo Gabba Gabba! is featured in People Magazine as the hottest kids’ show on TV: www.wildbrain.com/press/articles/YGG_People_091310.html
About DHX Media
DHX Media Ltd. is a leading international producer and distributor of television programming and interactive content with an emphasis on children, family and youth markets. DHX Media Ltd. shares trade on AIM and are listed on the TSX, the Toronto Stock Exchange. DHX Media has offices in Toronto, Halifax and Vancouver and has a growing library of over 2,300 half-hours of mostly children’s and youth-oriented properties from own and third party producers. Live action series include That’s So Weird and How to Be Indie, alongside animated series such as Animal Mechanicals, Franny’s Feet, Kid vs Kat, dirtgirlworld, and new preschool show, Rastamouse. www.dhxmedia.com
Disclaimer
This press release contains forward looking statements with respect to the Company, including statements regarding potential future growth of the DHX and W!LDBRAIN Entertainment businesses, statements regarding the future role of Michael Polis and the creative team behind Yo Gabba Gabba!, and statements regarding new merchandising and licensing revenue opportunities. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, such statements involve risks and uncertainties and are based on information currently available to the Company. Actual results may differ materially from those expressed or implied by such forward looking statements. Factors that could cause actual results or events to differ materially from current expectations, among other things, include risks related to market factors, customer contract interpretation, application of accounting policies and principles, and production related risks, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time including matters discussed under “Risk Factors” in the Company’s short form prospectus dated April 9, 2010 and in the Company’s Amended Annual Information Form incorporated by reference therein. These forward-looking statements are made as of the date hereof, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable law.